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Shortsales and Renters; ethical or not?

By
Real Estate Agent with Andrew Arroyo Real Estate - Lic#01187872 CALBRE#01187872

When was the last time a buyer said, "don't show me a short sale with a renter in it?"  This buyer went on to say that he didn't want to deal with (cheaters or liars) people taking advantage of the system, meaning, collecting rent while not paying their mortgage.  

His statement gave this ethical REALTOR® pause to consider his position.  Is the system being further corrupted by homeowners collecting rent while in the midst of negotiating a short sale? Or is this justifiable payback for the banks non-approval of loan modifications for anguished homeowners who can no longer afford the terms of their current mortgage, and/or experiencing other hardships beyond their control?  

Two faced

 

 

 

 

 

This seems to be is an ethical quandary with components on both sides of the mortgage dilemma.  What do you think? 

Posted by

Robert Sizer, REALTOR®

Real Estate investments, Marketing & Sales

Andrew Arroyo Real Estate

1020 Prospect Ave Ste. 350

La Jolla, CA 92037

Cell: (760) 519.8436

Fax: (760) 494.5304

Search All San Diego Homes FOR SALE

CA DRE LIC # 01187872

Donne Knudsen
Los Angeles & Ventura Counties in CA - Simi Valley, CA
CalState Realty Services

Robert - WOW!!!  Not sure how I would react to this either.  While I have heard some of my own borrowers tell me that they won't look at tenant occupied property either, they have always supported it with the reason that they don't want to have to deal with making sure the tenant is out by closing. 

So many of them have heard the horror stories of this happening (thx to the local media who like to sensationalize these scenarios) and they simply don't want to be in that position.  Does that limit the number of properties they see?  Sure, and they're ok with that.

Will be interesting to see what kind of comments you get.

Jun 21, 2011 10:04 AM
Robert Sizer
Andrew Arroyo Real Estate - Lic#01187872 - Encinitas, CA
Associate Broker

Thanks for your comments Donne.  I believe the showing instructions should read, "Call the occupant to arrange the showing", rather than the tenant.  This should result in more showings, rather than it not being considered at all.  

Jun 21, 2011 10:12 AM